The last week was a poor one in terms of profit generation (quite the opposite, declining portfolio value). You never know when profits and losses will hit your position, but I have expected quite some volatility, that is just part of the business... :)
If you have followed my positions closely, maybe you noticed that I moved my target in USDJPY a bit higher... In hindsight, that was not especially wise! My orginal plan would have been spot on (target 83.95), instead I saw my profit vaporize and becoming a loss. Since I am not trading while I am at work, this kind of reverse movements will be a part of my daily profits and losses...
Please see below for the updated returns for the last week
Current update:
Discretionary portfolio: USD 650 (down from 841 from the week before)
Algo: USD 1080 (down from 1391)
I have also decided to include two more currency pairs, namely AUDNZD and EURCAD. Hopefully helping diversification, I been a bit too much tilted against USD and JPY, now I have more equal exposure towards JPY, USD, AUD, EUR and CAD.
Discr.
Long USDJPY (stop at 80.40)
Algo.
Long USDJPY
Long GBPJPY
Long USDSEK
Short AUDCAD
Short EURUSD
Waiting for change of signals in AUDNZD and EURCAD
Finally, some short comments about my thoughts about the last week... I think it was a bit scary to see the sharp drop in the global manufacturing data, and the last weeks risk-off moves have made investors aware of that eventhough there were a huge liquidity injection, the structural problems are still not solved over a short period of time. So, that is why I will go short EURUSD in the discrenationary portfolio, USD should benefit vs. EUR, and I think the risk-reward looks favorable to the downside.
Have a lovely week!
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